The fallout, though significant, will likely be more limited than the rhetoric had suggested.
As I’ve repeatedly pointed out, for all the headlines that Philippine President Rodrigo Duterte generates – including on his “separation” from the United States – more often than not his rhetoric does not translate well into reality (See: “The Limits of Duterte’s US-China Rebalance”).
Indeed, even his advisers have privately, and sometimes even publicly, urged those trying to understand Philippine foreign policy to look more at what the administration actually does, rather than what Duterte says.
That applies to the U.S.-Philippine defense relations too. As I have noted previously, while Duterte had called for an end of all U.S.-Philippine military exercises, defense officials including Defense Secretary Delfin Lorenzana had indicated that Duterte in fact had little knowledge about the full extent of ties, even though his anti-Americanism is quite real and deeply-rooted (See: “Why the Philippines’ Rodrigo Duterte Hates America”).
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Given this, it was always likely that once the president was briefed by his advisers on the state of relations and given a set of recommendations, we would see more of a downgrading in U.S.-Philippine defense relations, as opposed to a full-blown severing (See: “Will Duterte Really End the US-Philippines Military Alliance?”).
Sure enough, that now appears to be what is happening. After defense officials including Lorenzana outlined their proposals to Duterte, the expected outcome looks to be the cutting of some war games but not others, thereby limiting the damage that the president can do to the decade-old relationship.
http://thediplomat.com/2016/11/how-much-will-duterte-wreck-the-us-philippines-military-alliance/